Case: 1:14-cv-04731 Document #: 23 Filed: 11/04/14 Page 1 of 14 PageID #:83

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
GREAT EASTERN ENTERTAINMENT CO.,
INC., a California Corporation AND
FUNIMATION ENTERTAINMENT,
a Texas Limited Liability Partnership
Plaintiffs,
VS.
AMANDA NAEEMI, an individual;
MARYLAND ANIME, a business entity of
unknown type; VK3388, LLC; VANESSA
WALDROP AND DOES 1 - 9
Defendants.

C.A. No.: 1:14-cv-04731

JURY TRIAL DEMANDED

PLAINTIFFS SECOND AMENDED COMPLAINT

TO THE HONORABLE UNITED STATES DISTRICT JUDGE:
Plaintiff Great Eastern Entertainment, Co., Inc. (Great Eastern) and newly joined
Plaintiff FUNimation Entertainment (FUNimation), by their attorney, file this Second
Amended Complaint against Amanda Naeemi, Maryland Anime, VK3388, LLC and Unknown
Doe Defendants 1 9, seeking damages, injunctive relief and other relief for violations of their
rights including, inter alia, passing off, trademark infringement, copyright infringement, false
advertisement, unfair competition, deceptive trade practices and consumer fraud, and for cause,
respectfully shows the court as follows:
JURISDICTION AND VENUE
1.

This cause of action arises under the Lanham Act, 15 U.S.C. 1051 et seq., the

Copyright Act, 17 U.S.C. 101 et seq., and specifically under 15 U.S.C. 1125(a), and related
Illinois state statutes and common law. Jurisdiction is proper under 15 U.S.C. 1121 and 28

PAGE 1

Case: 1:14-cv-04731 Document #: 23 Filed: 11/04/14 Page 2 of 14 PageID #:84

U.S.C. 1331 and 1338(a) and (b).

2.

Venue is proper in this Court under 28 U.S.C. 1391. A substantial part of the

acts and omissions giving rise to Plaintiffs claims occurred in this judicial district and
Defendants are subject to personal jurisdiction in this judicial district.
3.

Specifically, in May of 2014, Defendants rented a vendor space at the Hyatt

Regency OHare in Rosemont, Illinois, as part of the midwest anime convention known as
Anime Central. At this convention Defendants displayed, offered for sale and did sell
merchandise bearing the name, logo and address of Great Eastern. But this merchandise was not
actually created by Great Eastern. On May 17th, 2014, during this convention, Defendants were
issued a citation from convention staff for selling counterfeit items and were warned that
further violation would lead to immediate ejection from the [convention] hall without refund.
PARTIES
4.

Plaintiff Great Eastern is one of the leading makers of anime and video game

merchandise in the United States. Anime is a style of motion picture animation originating in
Japan that was once characterized by stark colors and high-action. The term now refers to
virtually all animated motion picture content originating in Japan as well as similar looking
animated motion pictures created elsewhere. Examples of anime and video game franchises for
which Plaintiff creates merchandise, through lawful licenses, include Attack on Titan, Dragon
Ball Z, One Piece, Sailor Moon, Metal Gear Solid, and Mega Man. Examples of products created
by Great Eastern include messenger bags, keychains, wallets, cellphone charms, iPhone cases, tshirts, wall scrolls, wrist bands, file folders, clocks, watches, notebooks and stationery.
5.

Great Easterns distinctive logo is known throughout the anime industry and

anime community. It has been in use since 1995. The application for trademark registration of

PAGE 2

Case: 1:14-cv-04731 Document #: 23 Filed: 11/04/14 Page 3 of 14 PageID #:85

this logo has been assigned serial number 86301996 the U.S. Patent and Trademark Office.
6.

Plaintiff FUNimation is an entertainment company, which produces, markets and

distributes popular animated motion pictures (primarily anime) and other media in the United
States and numerous other territories. Many of FUNimations titles are well known and easily
recognizable in the United States. These titles include Dragon Ball Z, One Piece, Attack on
Titan, Hetalia: Axis Powers, Fairy Tail, Fullmetal Alchemist and Evangelion. Plaintiffs titles
have regularly broadcast on many major networks in the U.S., including FOX, Nickelodeon,
IFC, Spike and Cartoon Network. Additionally, FUNimations copyrighted content has served as
the source for countless different types of merchandise, including action figures, collector
figurines, clothing, accessories, plush toys, posters and wall scrolls.
7.

FUNimation is the exclusive owner of copyright rights to produce derivations of

Attack on Titan localized for the U.S. market. FUNimation owns the exclusive right to distribute
these derivative works in the U.S. and various other English-speaking territories. FUNimation
also owns the exclusive rights to create and distribute merchandise derived from these motion
pictures, their characters and other elements. FUNimations rights were granted by written
license from the creators of the motion pictures. These motion pictures have been and are being
registered with the U.S. Copyright Office. One copyright registration relevant to the instant case
is that for Attack on Titan: To You, in 2000 Years - The Fall of Shiganshina, Part 1.1
8.

FUNimation is also the exclusive U.S. licensee of the trademark Attack on Titan,

as it pertains to U.S. distribution of animated motion pictures and merchandise related to these
animated motion pictures. This trademark is owned by Kodansha, Ltd. and has been submitted to
the U.S. Patent and Trademark Office for registration. The mark is identified by serial number
1

This registration application has been submitted, along with the fee and deposit materials. The registration does not

PAGE 3

Case: 1:14-cv-04731 Document #: 23 Filed: 11/04/14 Page 4 of 14 PageID #:86

86120811 and was published in the Trademark Official Gazette on October 28, 2014.
9.

Defendant Amanda Naeemi is an entrepreneur believed to reside in Maryland.

Her company, Maryland Anime, is a seller of anime-related merchandise. On information and

belief, Defendant Naeemis primary means of conducting business is the retail sale of
merchandise at anime conventions and comic book conventions throughout the United States.
10.

Defendant Vanessa Waldrop is an entrepreneur believed to reside in Maryland.

On information and belief, Defendant Waldrops primary means of conducting business is the
retail sale of merchandise at anime conventions and comic book conventions throughout the
United States.
11.

Defendant VK3388, LLC, is a company used by Defendants Naeemi and Waldrop

for conducting business as described above.

12.

Defendant Does 1 9 are unknown individuals believed to work for, work with,

manufacture or supply Defendant Naeemi with the counterfeit merchandise at issue.

BACKGROUND AND FACTS
13.

Great Eastern Entertainment is renown in the anime community as one of the

communitys largest manufacturers of high quality, anime-related merchandise. Likewise, its

distinctive logo has become a signifier of said quality for anyone who regularly purchases animerelated merchandise. Consumers at retail stores, conventions and trade shows seek out
merchandise bearing the Great Eastern logo because they recognize it for quality and know that
the products it is attached to have been approved by the creators of the underlying characters and
stories on which the product is based.
14.

Great Eastern has earned a trusted reputation among anime studios from which it

obtains its intellectual property licenses. This has come in part from the personal involvement of

PAGE 4

Case: 1:14-cv-04731 Document #: 23 Filed: 11/04/14 Page 5 of 14 PageID #:87

Great Easterns President, Kent Hsu, who travels to studios in person to present documentation,
including company manuals, of Great Easterns manufacturing processes and related operations.
These manuals are complete with photos detailing the procurement and storage of materials,
training of personnel, operation of manufacturing equipment and quality assurance procedures.
The presentations also include an examination of product samples, complete with product
dismantling to reveal the various indicia that inform Great Eastern of a well-made product. Also
available are a small handful of articles with flaws that, however slight, prompted Great Eastern
to hold and remake those copies.
15.

On May 16th of 2014, one of the largest anime conventions in the country

commenced at the Hyatt Regency OHare in Chicago, Illinois. This convention is known as
Anime Central The Midwest Anime and Manga Convention (ACEN). According to the
organizers of the ACEN, more than 29,675 people attended the convention this year. One of the
main draws of this convention, as with most anime conventions, is the dealers room. (aka the
exhibitors hall) The dealers room is typically the largest part of the convention space and was
indeed the largest part of ACEN 2014. This is where vendors setup booths and tables to sell
merchandise to the public, advertise products and services and sometimes conduct mini-events
such as celebrity autographing, special announcements and costume contests.
16.

On the aisle containing the vendor spaces numbered in the 800 range, was a two-

space section registered to Maryland Anime at spaces 835 and 837. Registration records from the
convention reveal the alternate business name for Maryland Anime as VK3388, LLC. The
business address listed was 7604 Anamosa Way, Derwood, MD Maryland, 20855. These records
also show that the individual responsible for Maryland Anime was one Amanda Naeemi with
the e-mail address amanda@marylandanime.com and the phone number 240-643-9534.

PAGE 5

Case: 1:14-cv-04731 Document #: 23 Filed: 11/04/14 Page 6 of 14 PageID #:88

17.

On or about May 17th, 2014, Emmanuel Rivera, a Marketing Specialist for

Aniplex, Inc. (a major anime studio and subsidiary of Sony Music Entertainment Japan) noticed
suspicious merchandise for sale at the Maryland Anime booth at the ACEN convention. One
item that stood out was the plush toy of character Kirito from Aniplexs animated motion picture
series, Sword Art Online. Though the plush toy clearly depicted Kirito and was the same size as
Aniplexs official Kirito plush toy, which is manufactured by Plaintiff, this item was of
noticeably lesser quality. Its fabric was coarser and less flexible than the fabric of the official
plush toy. It was also missing details of the Kirito costume, such as the belt and the upper
outlining of the jacket. Most noticeably, it lacked the sewn-in tag that should have displayed
Great Easterns name and company logo, had the item been created by Great Eastern. But this
item was not created by or at the direction of Great Eastern.
18.

The most damning evidence of the illicit origin of this merchandise was the tag

hanging from it. At first glance, the tag appeared to be a tag from Plaintiff, Great Eastern, but the
tag was riddled with odd typographical errors and bore a QR code2 that did not direct customers
to Great Easterns website, but instead directed them to Chinese manufacturer Guangdong
Yaodonghua Furniture Boards Co., Ltd. via the website www.yaodonghua.net.cn The
typographical errors are as follows:

19.

A missing space in the street address: 855 WestWalnut St.

An improperly capitalized abbreviation for the USA: u.S.A.

A missing space in the geographic indicator: Madein China

Upon seeing this fake tag subsequent to seeing the other flaws with the

A QR code (quick response code) is a type of matrix barcode that is readable by most modern mobile phones, via
the camera, and contains information about the item to which it is attachedtypically a website address.

PAGE 6

Case: 1:14-cv-04731 Document #: 23 Filed: 11/04/14 Page 7 of 14 PageID #:89

merchandise, Mr. Rivera became certain that this merchandise was not created by any party
authorized by Aniplex, including Plaintiff Great Eastern, thus indicating that its sale was a
violation of Aniplexs intellectual property rights as well as Plaintiffs. As such, Mr. Rivera
promptly reported the counterfeit merchandise to the convention staff. Because Aniplex is the
owner of the underlying intellectual property and Mr. Rivera is an agent of Aniplex, the
convention staff did not require any evidence of infringement beyond that of Mr. Riveras
statement.
20.

In response, the convention staff served Maryland Anime with a written warning

notice. This notice listed the type of offense as Violating Terms of Contract and Selling
counterfeit plush & items.3 The description of the infraction on the notice repeats this point,
stating, Maryland Anime was caught selling counterfeit plush & items. The notice lists the
plan for improvement as, Maryland Anime is to remove all counterfeit items from view, sale
and within the hall. It concludes with a statement of consequences for further infractions which
is, Immediate ejection from the hall without refund. A copy of the notice was signed by one of
the John Doe defendants in the presence of Mr. Rivera, whom he describes as an unknown
female of Asian descent.
21.

On information and belief, including photographic evidence, Defendants were

also displaying, offering for sale and selling a series of Attack on Titan articles that Kodansha
and FUNimation had never authorized for manufacture, reproduction or distribution. Those
articles were: yellow backpacks bearing the Attack on Titan word mark and the distinctive Attack
on Titan blue and white feather crest, brown backpacks bearing the Attack on Titan crest, black
shoulder bags bearing the Attack on Titan crest, medium sized plush dolls embodying the
3

In the anime community, plush figures/dolls/toys are more commonly referred to simply as plush or plushes
than plush toy(s).

PAGE 7

Case: 1:14-cv-04731 Document #: 23 Filed: 11/04/14 Page 8 of 14 PageID #:90

exposed-muscle-and-bones humanoid that is iconic of the Attack on Titan franchise and small
plush dolls of the same.

COUNT I
FALSE ADVERTISING AND USE OF WORDS LIKELY
TO CAUSE CONFUSION AS TO SPONSORSHIP OF GOODS IN VIOLATION
OF THE LANHAM ACT, 15 U.S.C. 1125(A) ET SEQ.
22.

Plaintiffs reallege and incorporate by reference the allegations of paragraphs 1

through 21 above as if fully set forth herein.

23.

Defendants have made false and/or misleading statements on their product

labeling in violation of the Lanham Act, 15 U.S.C. 1125.

24.

Defendants labeling is likely to deceive customers regarding the true nature and

origin of their merchandise.

25.

Defendants labeling is likely to deceive customers regarding the association or

sponsorship of their merchandise.

26.

Defendants labeling has and will continue to materially influence the purchasing

decisions of potential customers to the extent that they choose Defendants products instead of
those offered by Plaintiffs Great Eastern and FUNimation Entertainment.
27.

Defendants false and misleading advertising claims have resulted in the loss of

current and prospective customers who, but for Defendants false labeling, would have
purchased Plaintiffs authentic merchandise.
28.

Defendants statements affect interstate commerce.

29.

Defendants knew their product labels on the Kirito plush were false and/or

misleading and that their products were not affiliated with, sponsored by or approved by Great

PAGE 8

Case: 1:14-cv-04731 Document #: 23 Filed: 11/04/14 Page 9 of 14 PageID #:91

Eastern, despite the indication on the labeling.

30.

Defendants knew their backpacks bearing the mark of the Attack on Titan

franchise were not affiliated with, sponsored by or approved by FUNimation, Great Eastern or
Kodansha.
31.

As a direct and proximate result of Defendants conduct, Plaintiffs have and

continue to incur actual harm, entitling Plaintiffs to an injunction, corrective advertising,

Defendants profits derived from their unlawful acts and increased damages pursuant to the
principles of equity in accordance with the provisions of 15 U.S.C. 1116 and 1117.
COUNT II
PASSING OFF UNDER ILLINOIS UNIFORM DECEPTIVE
TRADE PRACTICES ACT UNDER 815 ILCS 510 ET SEQ.
32.

Plaintiffs reallege and incorporate by references the allegations in paragraphs 1

through 31 of this Complaint.

33.

The foregoing acts of Defendants constitute a violation of the Illinois Uniform

Deceptive Trade Practices Act, 815 ILCS 510 et seq.

34.

Under the Illinois Uniform Deceptive Trade Practices Act, [a] person engages in

a deceptive trade practice when, in the course of his or her business, vocation, or occupation, the
person (1) passes off goods or services as those of another; (2) causes likelihood of confusion
or of misunderstanding as to the source, sponsorship, approval, or certification of goods or
services.4
35.

As set forth above, Defendants false labeling is likely to deceive customers

regarding the true nature and origin of Defendants knockoff Kirito plush.
36.
4

Should such deception continue, it would produce irreparable injury to Great

815 ILCS 510/2(a)

PAGE 9

Case: 1:14-cv-04731 Document #: 23 Filed: 11/04/14 Page 10 of 14 PageID #:92

Eastern, and to Aniplex, by allowing Defendants to continue selling counterfeit merchandise that
Defendants have passed off as Great Easterns merchandise.
37.

Defendants actions have caused Great Eastern to suffer harm and, unless

enjoined by this Court, will cause Great Eastern to continue to suffer harm to its operation,
reputation and consumer goodwill.
38.

On information and belief, or as a reasonable opportunity for discovery will show,

Defendants willfully engaged in one or more deceptive trade practices.

39.

Upon information and belief, the conduct alleged was and continues to be

malicious, willful and wanton.

40.

As a result of Defendants wrongful conduct, Great Eastern is entitled to

injunctive relief, Defendants profits, damages, attorneys fees, and costs.

COUNT III
ILLINOIS CONSUMER FRAUD AND DECEPTIVE
BUSINESS PRACTICES ACT UNDER 815 ILCS 505 ET SEQ.
41.

Plaintiffs reallege and incorporate by reference the allegations in Paragraphs 1

through 40 of this Complaint.

42.

The foregoing acts of Defendants constitute a violation of the Illinois Consumer

Fraud and Deceptive Business Practices Act, 815 ILCS 505 et seq.
43.

The Illinois Consumer Fraud and Deceptive Business Practices Act provides that

[u]nfair methods of competition and unfair or deceptive acts or practices, including but not
limited to the use or employment of any deception fraud, false pretense, false promise,
misrepresentation or the concealment, suppression or omission of any material fact, with intent
that others rely upon the concealment, suppression or omission of such material fact, or the use
or employment of any practice described in Section 2 of the Uniform Deceptive Trade Practices

PAGE 10

Case: 1:14-cv-04731 Document #: 23 Filed: 11/04/14 Page 11 of 14 PageID #:93

Act in the conduct of any trade or commerce are hereby declared unlawful whether any
person has in fact been misled, deceived or damaged thereby.5
44.

Defendants false and/or misleading labeling is likely to deceive customers

regarding the true nature and origin of Defendants plush merchandise.

45.

Defendants false and/or misleading labeling is likely to deceive customers

regarding the affiliation or approval of FUNimation regarding the backpacks bearing the Attack
on Titan mark without FUNimations authorization.
46.

Should such deception continue, it might cause irreparable injury to the goodwill

that Plaintiff has steadily built up in its brand, as well as injury to Great Easterns operation and
reputation.
47.

Upon information and belief and as a reasonable opportunity for discovery will

show, Defendants willfully engaged in one or more deceptive trade practices.

48.

As a result of Defendants wrongful conduct, Plaintiffs are entitled to injunctive

relief, Defendants profits, damages, attorneys fees, and costs.

49.

Upon information and belief, the conduct alleged was and continues to be

intentional, malicious, willful, and wanton.

50.

The conduct alleged has damaged Plaintiffs in an amount not yet determined.
COUNT IV
COPYRIGHT INFRINGEMENT IN VIOLATION
OF THE COPYRIGHT ACT, 17 U.S.C. 512 et seq

51.

Plaintiffs reallege and incorporate by reference the allegations in Paragraphs 1

through 50 of this Complaint. Defendants have offered for sale and sold merchandise derived

815 ILCS 505/2

PAGE 11

Case: 1:14-cv-04731 Document #: 23 Filed: 11/04/14 Page 12 of 14 PageID #:94

from characters and elements of the Attack on Titan animated motion picture series, which is
owned by Plaintiff FUNimation and licensed for merchandise creation to Plaintiff Great Eastern.
Specifically, Defendants sold backpacks bearing the Attack on Titan crest and sold plush toys
embodying the Attack on Titan exposed-muscle-and-bones humanoid.
52.

Defendants distributed and imported this merchandise without license or

authorization from Plaintiffs. Such unauthorized distribution is a violation of Plaintiffs rights

under the Copyright Act.
JURY DEMAND
53.

Plaintiff hereby demands a jury trial on all issues so triable.

PRAYER
WHEREFORE, Plaintiffs pray for judgment against Defendant as follows:
a. Order, adjudge and decree that Defendants have engaged in false adverting, deceptive
indications of sponsorship/affiliation/approval, promotion, and descriptions under
Section 43(a) of the Lanham Act, 15 U.S.C. 1125(a), awarding Plaintiffs their
damages, Defendants profits derived from their unlawful acts, increased pursuant to
the principles of equity, corrective advertising, and Plaintiffs costs of suit and
reasonable attorneys fees;
b. Order, adjudge and decree that Defendants have made false and misleading
statements in commercial advertisements in violation of 15 U.S.C. 1125(a);
c. Order, adjudge and decree that Defendants acts constitute a violation of the Illinois
Uniform Deceptive Trade Practices Act, 815 ILCS 510 et seq. and award Plaintiffs
damages and issuance of a permanent injunction for the same;

PAGE 12

Case: 1:14-cv-04731 Document #: 23 Filed: 11/04/14 Page 13 of 14 PageID #:95

d. Order, adjudge and decree that Defendants acts constitute a violation of the Illinois
Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505 et seq.;
e. Issue a preliminary injunction and a permanent injunction prohibiting Defendants,
their principals, officers, agents, servants, attorneys, employees and all others in
privity with it from:
i. making false or misleading statements in commercial advertisements
about the true nature, characteristics and/or qualities of Plaintiffs
products;
ii. labeling their products in a manner that indicates that the products are
made, endorsed, sponsored, affiliated with or authorized by Plaintiffs;
iii. assisting, aiding or abetting any other person or entity in engaging in or
performing any of the activities described above;
f. Order Defendants to deliver for destruction all labels, signs, prints, packages,
wrappers, receptacles, letterhead or form letters, or other materials in its possession,
custody, or control, bearing any simulation, reproduction, copy or colorable imitation
of any advertising containing the false statements, and all plates, matrices, and other
means of making the same under 15 U.S.C. 1118;
g. Issue preliminary and permanent injunctive relief pursuant to 17 U.S.C. 502 against
Defendants and their respective officers, agents, employees, and all other persons in
active concert, cooperation, privity or participation with them, requiring that they
cease and desist from further infringement of Plaintiffs copyrights and barring them
from directly or indirectly infringing Plaintiffs copyrights or continuing to use,
market, offer, sell, display, advertise, reproduce, develop, or manufacture any works

PAGE 13

Case: 1:14-cv-04731 Document #: 23 Filed: 11/04/14 Page 14 of 14 PageID #:96

derived or copied from Plaintiffs copyrights or to participate or assist in any such

activity;
h. Issue preliminary and permanent injunctive relief, pursuant to 17 U.S.C. 503,
against Defendants and their respective officers, agents, employees, and all other
persons in active concert, cooperation, privity or participation with them, enjoining
them to deliver under oath, to be impounded during the pendency of this action, and
for destruction pursuant to judgment herein, all originals, copies, derivatives or
duplicates of any work shown by the evidence to infringe upon any of Plaintiffs
copyrights;
i. Award Plaintiffs (i) Defendants profits from its illegal conduct, (ii) damages
sustained by Plaintiffs, and (iii) the cost of the action under 15 U.S.C. 1117(a), 815
ILCS 505/10a and common law as applicable;
j. Award Plaintiffs three times Defendants profits or Plaintiffs damages, whichever is
greater, and prejudgment interest under 15 U.S.C. 1117(b);
k. Award Plaintiffs punitive damages under 815 ILCS 505/10a and the common law;
l. Award Plaintiffs their reasonable attorneys fees under 15 U.S.C. 1117(a).

Respectfully Submitted,
s/
Evan Stone
Stone & Vaughan, PLLC
Texas Bar No. 24072371
624 W. University Dr., #386
Denton, Texas 76201
Phone: 469-248-5238
E-mail: evan@stonevaughanlaw.com

PAGE 14